AFE Quiz 5: Debits and Credits

In accounting, what is a debit?

An entry on the right side of an account
An entry on the left side of an account
An increase in liabilities
A decrease in assets

Which types of accounts are typically increased by a debit?

Liabilities and Equity
Assets and Expenses
Revenue and Liabilities
Equity and Revenue

Which of the following accounts is increased by a credit?

Cash
Rent Expense
Accounts Payable
Supplies

Which side is the credit side in a T-account?

Left
Right
Top
Bottom

What is the effect of a debit entry on an expense account?

It decreases the expense account
It increases the expense account
It has no effect
It increases owner’s equity

Which of the following is true?

Credits always increase asset accounts
Debits always decrease liability accounts
Debits always increase expense accounts
Credits always decrease revenue accounts

If a business pays off a liability, what is the correct entry?

Debit Cash, Credit Accounts Payable
Debit Accounts Payable, Credit Cash
Debit Expense, Credit Cash
Debit Revenue, Credit Accounts Payable

Which account normally has a debit balance?

Revenue
Accounts Payable
Utilities Expense
Owner’s Capital

What is the effect of a credit entry on an asset account?

It increases the asset account
It decreases the asset account
It has no effect
It increases owner’s equity

Which of the following is increased by a credit?

Cash
Expense
Revenue
Drawing

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